US Labels Market

US Labels Market

US demand to approach $20 billion by 2019

Label demand in the US is forecast to approach $20 billion in 2019. Growth will be aided by continued expansion of the overall economy as well as increases in manufacturing activity and retail sales. The pressure sensitive segment will remain dominant, accounting for more than 75 percent of the total market. Growth for pressure sensitive labels will be in line with the overall average, with faster gains held back by the already high penetration of pressure sensitives, along with competition from alternatives such as heatshrink and in-mold labels (IML). Nonetheless, innovations in printed electronics will spur greater use of low cost smart labels with packaged goods and other display applications.

Heat-shrink, in-mold labels to be fastest growing

Heat-shrink and in-mold labels will see the fastest growth through 2019. Gains for heat-shrink types will be attributable to their 360-degree aesthetics, high quality images, a maximum promotional area, and ability to form-fit contoured containers. Advances for in-mold labels will be supported by their enhanced shelf appeal based on superior graphics and the growing range of containers and applications using IML.

Plastic film to continue supplanting paper stock

While paper will continue to represent the majority of label stock through 2019 and beyond, plastic films will continue to expand their share at paper’s expense. The growing use of plastic films is based on the aesthetic and performance advantages of these labels, as well as the rising utilization of plastic packaging and the popularity of the no-label look. Additionally, labeling methods that rely heavily on plastic substrates are becoming more popular. Nonetheless, paper label demand will benefit from economy advantages and the ability to be coated for enhanced durability. Paper’s metalizing and texturing capability will also promote growth in higher-end uses.

Digital label printing to outpace flexography

Flexography is the leading label printing technology in the US and is forecast to log slightly above average growth through 2019, driven by its versatility, low cost, good image quality, and widespread use in the large pressure sensitive segment and the faster growing sleeve label segment. However, digital printing will post well above average growth through 2019, continuing to displace traditional label decoration techniques, such as lithography, flexography, and screen. Advances will reflect improvements in print quality and speed that will fuel growing adoption of digital printing by label converters and printers. Among the advantages of digital printing are increased design flexibility, shortened lead times, and low costs.

Secondary labeling to be fastest growing function

Primary packaging dominates label demand in terms of function. Though growth will slightly trail the overall average through 2019, gains will be aided by ongoing opportunities in the large food and beverage markets, as well as above average gains in the packaging of pharmaceuticals. Secondary labeling and mailing and shipping applications will represent the fastest growing markets for labels. In secondary labeling, advances will be supported by favorable retail sales, along with solid prospects for barcoding labels for inventory and data tracking and in the healthcare, transportation, and distribution sectors.

Study coverage

This upcoming industry study, Labels, presents historical demand data (2004, 2009 and 2014) plus forecasts (2019 and 2024) by material, application method, printing technology, and function. The study also considers market environment factors, analyzes industry structure, evaluates company market share and profiles 45 US industry players.
TABLE OF CONTENTS
INTRODUCTION xi
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Outlook 4
Demographic Outlook 9
Consumer Income & Spending 12
Manufacturing Outlook 15
Retail Sales 20
Business Establishments 24
Packaging Trends 27
Packaging Outlook 28
Paper 30
Plastic 31
Metal 32
Glass & Wood 33
Labeling Trends 34
Mailing & Shipping Trends 37
USPS Outlook 38
Automation Technologies 42
Historical Market Trends 43
Pricing Trends 46
Regulatory Issues 49
Environmental Considerations 53
World Markets 57
US Foreign Trade 58
III. TECHNOLOGICAL TRENDS 61
General 61
Barcoding Trends 61
Growth Factors 63
Applications 65
Packaging & Retail 65
Mailing & Shipping 66
Manufacturing & Distribution 67
Other Applications 67
Smart Labeling 70
Technologies & Suppliers 71
Applications 74
Competitive Profile 74
Competitive Technologies 76
Direct Printing 76
Electronic Shelf Labeling 80
IV. RAW MATERIALS 82
General 82
Paper 83
Types 84
Producers 86
Plastic Films 88
Polyethylene 92
Polypropylene 93
Polyvinyl Chloride 96
Other Plastic Films 97
Adhesives 100
Inks 103
Types 103
Technologies 105
Other 107
V. APPLICATION METHODS 109
General 109
Pressure Sensitive 112
Attributes 114
Materials 116
Applications 118
Producers 120
Glue-Applied 121
Attributes 124
Materials 125
Applications 126
Producers 126
Heat-Shrink & Stretch Sleeve 127
Heat-Shrink 130
Types 131
Materials 133
Applications 136
Producers 138
Stretch Sleeve 139
Attributes 140
Materials 140
Applications 141
Producers 142
In-Mold 142
Attributes 145
Materials 148
Applications 149
Producers 150
Heat Transfer 151
Attributes 153
Applications 154
Producers 155
Other Labels 156
Non-Shrink Wraparound 157
Heat-Seal 158
Gummed 159
Foam 160
VI. STOCK MATERIALS 161
General 161
Paper 162
Types 163
Application Methods 164
Plastic 166
Types 168
Application Methods 170
Other 171
VII. PRINTING TECHNOLOGIES 172
General 172
Flexography 176
Characteristics & Technologies 178
Applications 179
Lithography 180
Characteristics & Technologies 181
Applications 182
Digital 183
Characteristics & Technologies 185
Applications 187
Screen 190
Characteristics & Technologies 191
Applications 192
Gravure 193
Characteristics & Technologies 194
Applications 196
Letterpress 197
Characteristics & Technologies 198
Applications 199
Variable Information Printing 199
VIII. FUNCTIONS 201
General 201
Primary Packaging Labels 205
Food Processing 208
Applications 211
Label Types 212
Beverages 213
Nonalcoholic Beverages 215
Alcoholic Beverages 217
Pharmaceuticals 221
Regulatory Factors 222
Label Types 223
Cosmetics & Toiletries 225
Applications 227
Label Types 228
Other Primary Packaging 230
Secondary Labels 232
Retail 233
Other Secondary 236
Industrial Labels 238
Motor Vehicles 240
Other Industrial 242
Mailing & Shipping Labels 243
Decorative Labels 245
Other Labels 248
IX. INDUSTRY STRUCTURE 251
General 251
Market Share 254
Label Stock Producers 255
Label Printers & Converters 260
Competitive Strategies 262
Cost Considerations 264
Mergers & Acquisitions 266
Cooperative Agreements 269
Manufacturing 271
Marketing 273
Distribution 275
Company Profiles 276
Acucote Incorporated 277
Amcor Limited 278
Appvion Incorporated 279
AR Metallizing NV 281
Avery Dennison Corporation 282
Bay Area Labels, see Illinois Tool Works
Bemis Company Incorporated 289
Brady Corporation 290
CCL Industries Incorporated 293
Cenveo Incorporated 299
Chesapeake, see Multi-Packaging Solutions
Constantia Flexibles Group GmbH 302
Derprosa Film, see Taghleef Industries
Diagraph Marking & Coding Group, see Illinois Tool
Works
Discount Labels, see Cenveo
Donnelley (RR) & Sons Company 304
Dow Corning Corporation 307
Electrocal/Polymark, see Illinois Tool Works
Epsen Hillmer Graphics Company 308
Expera Specialty Solutions LLC 310
Exxon Mobil Corporation 311
FLEXcon Company Incorporated 312
Fort Dearborn Company 316
Fuji Seal International Incorporated 319
Gilbreth Shrink Sleeve Labels, see Cenveo
Graphic Packaging Holding Company 320
Green Bay Packaging Incorporated 321
Hammer Packaging Corporation 323
Honeywell International Incorporated 325
Illinois Tool Works Incorporated 327
Inland 330
Intermec Technologies, see Honeywell International
ITW Graphics, see Illinois Tool Works
Jindal Poly Films Limited 332
Lancer Label, see Cenveo
Lightning Labels, see Cenveo
Lintec Corporation 334
Loparex BV 337
MACtac 339
Mondi Group 342
MPI Label Systems 344
Multi-Color Corporation 346
Multi-Packaging Solutions Incorporated 349
Nashua, see Cenveo
Neenah Paper Incorporated 350
NewPage Holdings, see Verso
Printpack Incorporated 352
Quill, see Staples
Ritrama SpA 354
RX Technology, see Cenveo
Seton Identification Products, see Brady
Smyth Companies Incorporated 355
Spear USA, see Constantia Flexibles
Spinnaker Coating LLC 357
Standard Register Company 358
Staples Incorporated 360
Taghleef Industries LLC 362
Technicote Incorporated 364
3M Company 367
Tricor Direct, see Brady
United Ad Label, see Donnelley (RR) & Sons
UPM-Kymmene Corporation 370
Verso Corporation 373
WS Packaging Group Incorporated 375
Zebra Technologies Corporation 378
Additional Companies in the Label Industry 380

LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Population & Households 12
3 Personal Consumption Expenditures 15
4 Manufacturers' Shipments 20
5 Retail Sales 24
6 Business Establishments 27
7 Packaging Supply & Demand 30
8 US Postal Service Mail Revenues & Pieces of Mail Handled 42
9 Label Demand, 2004-2014 45
10 US Foreign Trade in Labels 60
SECTION IV -- RAW MATERIALS
1 Raw Material Use in Labels 83
SECTION V -- APPLICATION METHODS
1 Label Supply & Demand by Application Method 111
2 Pressure Sensitive Label Demand by Material 114
3 Glue-Applied Label Demand by Material 123
4 Heat-Shrink & Stretch Sleeve Label Demand by Type
& Material 129
5 In-Mold Label Demand by Material & Molding Process 145
6 Heat Transfer Label Demand by Material 153
7 Other Adhesive Label Demand by Material 157
SECTION VI -- STOCK MATERIALS
1 Label Demand by Stock Material 162
2 Paper Label Demand by Type 164
3 Paper Label Demand by Application Method 166
4 Plastic Label Demand by Application Method 168
5 Other Label Demand by Application Method 171
SECTION VII -- PRINTING TECHNOLOGIES
1 Label Demand by Printing Technology 175
2 Flexographic Label Demand by Type 178
3 Lithographic Label Demand by Type 181
4 Digital Label Demand by Type 184
5 Screen Printed Label Demand by Type 191
6 Gravure Label Demand by Type 194
7 Letterpress Label Demand by Type 198
SECTION VIII -- FUNCTIONS
1 Label Demand by Function 204
2 Primary Packaging Label Demand by Market 207
3 Food Processing Label Demand 211
4 Beverage Label Demand 215
5 Pharmaceutical Label Demand 222
6 Cosmetic & Toiletry Label Demand 226
7 Other Primary Packaging Label Demand 232
8 Secondary Label Demand by Market 233
9 Retail Label Demand 236
10 Other Secondary Label Demand 238
11 Industrial Label Demand by Market 240
12 Mailing & Shipping Label Demand 245
13 Decorative Label Demand 248
14 Other Label Demand 250
SECTION IX -- INDUSTRY STRUCTURE
1 US Label Sales by Company, 2014 253
2 Selected Acquisitions & Divestitures 268
3 Selected Cooperative Agreements 271

LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
1 Label Demand, 2004-2014 46
2 Label Pricing, 2004-2024 49
3 World Label Demand, 2014 58
SECTION V -- APPLICATION METHODS
1 Label Demand by Application Method, 2014 112
SECTION VII -- PRINTING TECHNOLOGIES
1 Label Demand by Printing Technology, 2014 176
SECTION VIII -- FUNCTIONS
1 Label Demand by Function, 2014 205
2 Primary Packaging Label Demand by Market, 2014 208
SECTION IX -- INDUSTRY STRUCTURE
1 US Label Stock Market Share, 2014 256
2 US Finished Label Market Share, 2014 262